Budget 2007 Actions Support the Vision
for an Affordable
and Accessible Post-Secondary Education System

The Williams Government continues to increase spending
in post-secondary education with initiatives that speak directly to the
needs of current students, graduates of the provinceís post-secondary
institutions and priorities identified for the post-secondary system.

Budget 2007 will see the Provincial Government
enhancing financial assistance with a $14.4 million investment to help
current and former students reduce their debt-load. The Provincial
Government will also provide over $70 million for a new residence at
Memorial Universityís Paton College, and a new residence and
construction of additional academic and research space at Sir Wilfred
Grenfell College in Corner Brook.

"Government recognizes very clearly the impact a high
debt-load can have on graduates," said the Honourable Joan Burke,
Minister of Education. "We want our graduates to establish themselves in
Newfoundland and Labrador and we are continuing to take actions that
make our post-secondary education system both affordable and
accessible."

At a student roundtable in March, student
representatives, as well as former students, outlined steps they believe
will have the greatest impact on lowering debt. In response, and to
further cement this provinceís status as having the best student aid
package in the country, the Provincial Government has made the following
changes to the Student Loan Program, valued at $14.4 million:

Interest charged on student loans will be reduced
from prime plus 2.5 per cent to prime, at a cost of $3.7 million
annually. This will have an immediate and direct impact on 46,000
people who are in repayment of their student loans; and,

An introduction of an up-front, needs-based grant
program, providing financial assistance of approximately $10.7
million annually.

Students can currently borrow a maximum of $140 a week
on the provincial portion of their student loan. The new grant program
will reduce that amount up to $70 a week. The other $70 will be provided
as an up-front, non-repayable grant. This will provide the same level of
funding, while cutting in half the amount of money students with the
highest need will borrow. In addition, this is the first time
since the loan program was introduced that students in one- and two-year
programs at the College of the North Atlantic and private colleges will
qualify for a non-repayable grant.

"We are on the cutting-edge of student aid assistance
in the country. Newfoundland and Labrador is now leading the country
with the lowest interest rate on student loans. There can be no clearer
indication of this governmentís commitment to our students than the
investments we are making to support them," said Minister Burke.
"Todayís announcement is in addition to the current Debt Reduction
Program which is designed to substantially lower a studentís provincial
loan at the end of their program of study, and the $90 million White
Paper on Post-Secondary Education, which includes a freeze on tuition
fees."

The Williams Government also recognizes that for
post-secondary institutions to remain competitive, they must have
state-of-the-art facilities and equipment to attract new students,
faculty and researchers.

"To that end, government is announcing a five-year,
$62 million residence construction program for Memorial University and
Sir Wilfred Grenfell College," said Minister Burke. "New residences will
be built while some of the older residences will be upgraded to meet
current standards. In 2007-08, $11.3 million is budgeted to begin the
design and planning phase of the projects. These investments are
necessary to ensure the successful recruitment of students, and will
also improve accessibility to university for students from rural
Newfoundland and Labrador."

The minister also announced the approval of $8.8
million over the next two years for the construction of additional
academic and research space at Sir Wilfred Grenfell College. The new
building will ensure Grenfellís growth and expansion and will ultimately
have economic development benefits for the entire region.

"Additional investments in Memorial University, both
in St. Johnís and Corner Brook, support its work to be nationally
competitive," the minister said. "I look forward to working with the
university as we consider the best and most strategic ways of meeting
its infrastructure requirements."

White Paper initiatives and recent investments in the
public college system are designed to position College of the North
Atlantic to address shortages in the skilled trades. Students must have
the education and training to take full advantage of emerging
opportunities. With 17 campuses throughout Newfoundland and Labrador and
additional funding for programming and learning resources, College of
the North Atlantic continues to build capacity to respond to and reflect
regional needs.

"As recently announced in the Northern Strategic Plan,
a new facility will be built for the Labrador West campus of College of
the North Atlantic," said Minister Burke. "This will be a multi-million
dollar project in keeping with this vibrant and growing community, with
programming that is well-matched to the particular needs of the region."

Other Budget 2007 Investments in College of the North
Atlantic Include:

$2 million for facility improvements, renovations
and equipment upgrades;

$660,000 for programming in skilled trades and
technology, as part of overall Budget 2007 investments for the
Skills Training and Apprenticeship system;

$600,000 to improve disability access at the
Burin campus; and,

$450,000 to expand the delivery of Early
Childhood Education programming, at the Corner Brook and Happy
Valley-Goose Bay campuses.

"Investments in education span many sectors and impact
the growth and development of our province and our people," said
Minister Burke. "As noted in this yearís funding to promote research and
development, $1 million has been allocated for the creation of a School
of Ocean Technology at the Marine Institute. Government is also making
substantial investments in the area of apprenticeship and skilled trades
training. These are important investments as we position ourselves to
take advantage of exciting new opportunities."

Other Budget 2007 Investments in Memorial University
Include:

$7.4 million for deferred maintenance and White
Paper initiatives and equipment;

$800,000 for a national and international
marketing campaign to increase undergraduate and graduate enrolment
and increase revenues from donors and others;

$200,000 for the recruitment of international
students, support services and internships to encourage students to
stay in the province, which underpins the provinceís Immigration
Strategy; and,

$500,000 to support distance education learning
opportunities at the university, providing greater access and
flexibility in a studentís scheduling.

The Provincial Government is also investing $140,000
to enhance a strategic literacy plan. Details of these and other
initiatives of Budget 2007 will be announced in the coming weeks.

"Our ability to compete and keep pace with new
technologies, research and development, depend critically upon the
investments we make today in our education system and in our people. We
are ensuring that our students attend world-class facilities, in a
system that is affordable and accessible," said Minister Burke.

All material copyright the Government of Newfoundland and Labrador. No
unauthorized copying or redeployment permitted. The Government assumes no
responsibility for the accuracy of any material deployed on an unauthorized
server.Disclaimer/Copyright/Privacy
Statement